Wynn Resorts, the renowned US-based casino giant, witnessed a remarkable turnaround in its Macau operations during the third quarter of 2023. The Macau segment, including Wynn Palace and Wynn Macau, contributed significantly to the company’s overall performance. While Wynn Palace recorded substantial growth, Wynn Macau faced some challenges.
Macau Operations Overview:
In Q3 2023, Wynn Resorts’ Macau operations reported an operating income of US$127.1 million, marking a stark improvement from the US$162.7 million loss in the same period the previous year.
Adjusted EBITDAR for the quarter increased by 3.6% quarter-on-quarter, reaching US$255.0 million.
Wynn Palace Highlights:
Wynn Palace, located in Cotai, emerged as a standout performer for Wynn Resorts.
Operating revenues surged by 598% YoY and 12.0% QoQ, reaching US$524.8 million.
Casino revenues of US$418.0 million were predominantly driven by the mass market, with US$402.3 million from mass tables, US$98.0 million from VIP, and US$22.2 million from slots.
Adjusted Property EBITDAR for Wynn Palace reached US$177.0 million, reflecting a 13.0% increase sequentially.
Wynn Macau Performance:
Wynn Macau experienced mixed results, with the peninsula property, Wynn Macau, facing challenges in contrast to the impressive performance of Wynn Palace.
Operating revenues for Wynn Macau were US$295 million, down from US$301.6 million in Q2.
Adjusted Property EBITDAR decreased to US$77.9 million from US$89.6 million in the previous quarter.
Casino revenues of US$230.3 million were driven by mass tables, contributing US$228.3 million, while VIP and slots generated US$42.0 million and US$16.1 million, respectively.
Wynn Macau’s slower customer return was attributed to ongoing upgrades to its mass gaming floor.
Macau’s Impact on Group-wide Performance:
Macau’s robust contribution played a pivotal role in Wynn Resorts’ overall performance.
Group-wide operating revenues, including Las Vegas, Encore Boston Harbor, and Wynn Interactive, increased by an impressive 87.9% YoY, reaching US$1.67 billion.
Adjusted Property EBITDAR saw a remarkable 206% YoY increase, reaching US$530.4 million.
Despite the positive operational performance, the company reported a net loss of US$116.7 million for the period.
CEO’s Perspective:
Craig Billings, CEO of Wynn Resorts, expressed satisfaction with the Q3 results, highlighting the strength across the property portfolio.
North American properties, Wynn Las Vegas and Encore Boston Harbor, achieved a new third-quarter record for Adjusted Property EBITDAR.
In Macau, the recovery continued, with particular strength noted in mass gaming, luxury retail, and hotel businesses.
Wynn Resorts’ Q3 performance underscores the resilience of its Macau operations, with Wynn Palace leading the way in revenue growth. While challenges were faced by Wynn Macau, ongoing upgrades and a strategic focus on mass gaming indicate potential for future improvements. The company’s overall positive trajectory, driven by strong performances in both Macau and North America, positions Wynn Resorts for continued success in the evolving landscape of the global gaming industry.